South Korea’s FSS plans to inspect korean-won-based and other crypto exchanges for illicit activities.
The country has launched new regulatory frameworks in the past few months.
The global crypto regulatory sector has shown a spike in activity in 2024. Leading nations such as the US and UK announced new regulatory plans while on the other hand, Eastern countries also made advancements. Presently, in the past day, South Korea’s regulatory body, the Financial Supervisory Services (FSS) announced that it would be inspecting two crypto exchange platforms.
Notably, the recent rise in illicit activities within the crypto sector has enhanced the regulators’ focus on developments. The South Korean regulator stated that it observed ‘unusual acts’ in the earlier mentioned Korean-Won-based exchanges. Additionally, it will also inspect crypto exchanges, such as Upbit, Bithumb, Coinone, Gopax, and Korbit.
Furthermore, the inspection is part of the Second Half Virtual Asset Operator Inspection Operation Plan, as stated by South Korean media. The inspections of other crypto exchanges are done to avoid legal issues, stated the regulator.
An FSS Spokesperson stated that:
“We plan to establish market order through strict sanctions on illegal activities and support businesses to strengthen their self-regulation functions.”
Moreover, the inspections will happen in three different spheres – user protection system and compliance with the Virtual Asset Act. The other two spheres include the business’s vulnerability to user protection and compliance with regulations related to unfair trade.
How is the FSS & FSC Shaping South Korea’s Regulatory Landscape?
The South Korean government has introduced several regulatory frameworks in the past few months. Its regulatory sector has shown a spur of action, with the introduction of new rules. With the new Virtual Asset Act, the advancements have evolved further.
Recently, in July, the FSC introduced supervisory fees for crypto exchanges such as Upbit, Bithumb, and Coinone. Additionally, it also introduced new monitoring systems for tracking crypto transactions.
Additionally, the FSS also outlined the details of inspection processes and discussed how it will operate in a flexible manner during the process.
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